- Alphabet reported earnings per share (EPS) of $2.31, surpassing expectations of $2.18, and showing an increase from $1.89 year over year.
- Total revenue excluding traffic acquisition costs (ex-TAC) reached $81.72 billion, a 15% increase year over year, exceeding the estimated $79.6 billion.
- Total revenue amounted to $96.43 billion, up 14% from the previous year, surpassing the forecasted $93.97 billion.
- Google Services revenue increased by 12% to $82.54 billion, exceeding the estimate of $80.44 billion.
- Google advertising revenue grew by 10% to $71.34 billion, beating the $69.71 billion estimate.
- Google Search & Other Revenue rose to $54.19 billion, up 12% year over year and above the expected $52.86 billion.
- YouTube ads revenue increased by 13% to $9.80 billion, surpassing the $9.56 billion estimate.
- Google Network Revenue fell slightly by 1.2% to $7.35 billion, but beat expectations of $7.25 billion.
- Google Subscriptions, Platforms and Devices Revenue surged by 20% to $11.20 billion, ahead of the $10.79 billion estimate.
- Google Cloud revenue grew significantly by 32% to $13.62 billion, exceeding the expected $13.14 billion.
- Other Bets revenue was $373 million, a modest 2.2% increase, falling short of the $429.1 million estimate.
- Total traffic acquisition costs (TAC) rose by 9.8% to $14.71 billion, exceeding the estimated $14.24 billion.
- Operating income for the quarter was $31.27 billion, up 14% year over year, slightly above the $31.07 billion estimate.
- Google Services operating income increased to $33.06 billion, up 11%, beating the $32.89 billion estimate.
- Google Cloud achieved an operating income of $2.83 billion, a substantial rise from $1.17 billion the previous year, surpassing the estimated $2.25 billion.
- Other Bets recorded an operating loss of $1.25 billion, a 9.9% increase, exceeding the expected loss of $1.16 billion.
- Alphabet-level activities saw a significant operating loss of $3.37 billion, up 47%, larger than the anticipated $3 billion loss.
- The operating margin remained at 32%, slightly below the estimated 33%.
- Capital expenditure was $22.45 billion, a notable 70% increase year over year, surpassing the $18.24 billion estimate.
- The number of employees increased by 4.2% to 187,103, slightly below the expected 187,372.
Alphabet on Smartkarma
Analysts on Smartkarma have differing views on Alphabet, with John Ley taking a bearish stance in his report “GOOGL: Q2 Vol Pricing, Performance Trends, and Earnings Setup.” Ley delves into Google’s upcoming Q2 earnings, historical reactions, and market expectations, highlighting strong returns in previous quarters and the significance of volatility in shaping future performance.
On the bullish side, Baptista Research provides insights into Alphabet’s potential challenges and opportunities. In their reports, Baptista Research discusses OpenAI’s threat to Google Chrome, Alphabet’s investment in fusion energy with Commonwealth Fusion Systems, and the company’s advancements in AI technology with Gemini 2.5 Pro. These reports paint a dynamic picture of Alphabet’s position in the market, reflecting the ongoing evolution and competition in the tech industry.
A look at Alphabet Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Alphabet Inc., the parent company of Google, is projected to have a positive long-term outlook based on the Smartkarma Smart Scores. With a strong momentum score of 5, Alphabet is showing promising growth potential in the future. This is supported by a growth score of 4, indicating a positive trajectory for the company’s expansion and development.
Additionally, Alphabet demonstrates resilience and stability with a score of 4 in this category, suggesting the company’s ability to weather market uncertainties. While the value and dividend scores are more moderate at 2 each, the overall outlook for Alphabet appears optimistic, especially in terms of growth and momentum as it continues to expand its diverse range of technology products and services.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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